The Enforcement Directorate on Tuesday said it arrested a former Madhya Pradesh transport department constable and two others "linked" to him in an alleged disproportionate assets linked money laundering case.

The ex-official Saurabh Sharma, Chetan Singh Gaur and Sharad Jaiswal were taken into custody under the Prevention of Money Laundering Act (PMLA) on Monday, the federal agency said in a statement.

The three were earlier arrested by the state police Lokayukta and the ED took their custody after moving a plea in the court seeking their remand from judicial custody of the former agency.

Sharma was appointed in Madhya Pradesh State Transport department as a constable in 2015, on compassionate grounds. He "acquired huge" assets disproportionate to known sources of income after getting post of constable in RTO (regional transport office) department of the MP government, the ED alleged.

"In connivance with Chetan Singh Gaur and Sharad Jaiswal, he established firms and companies and used their bank accounts and those of his family members to launder the proceeds of crime for investments in properties in the name of his family members, friends, firms and companies," it said.

The Lokayukta FIR alleged that Sharma amassed "disproportionate" assets worth crores of rupees in the name of his family members, associated firms and companies.

The Lokayukta and the ED are also probing the accused in a separate incident of recovery of 52 kg gold bars and cash of Rs 11 crore from an abandoned vehicle of Gaur, a "close associate" of Sharma.

The ED had conducted raids in this case earlier and frozen assets worth Rs 10 crore.

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